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Poindings & business debt recovery
A private members bill recently passed by the Scottish Parliament could have major implications for companies trying to recover debts due to them.
The purpose of the bill is to stop people selling a debtor’s goods as a means of enforcing court decrees for the payment of money. Poindings [pronounced ‘pindings’] and Warrant sales have been around for many years and while they are less frequently used, they remain a useful tool in obtaining payment of outstanding debts.
Poindings against debtors’ personal assets such as their house contents have been limited in scope since 1987, however our concern is that the bill as it was presented to Parliament would prevent the use of the procedure even where the debtor is a business.
Unless the Scottish Executive brings in further legislation to regulate enforcement proceedings, there is a strong possibility that debtors may be able to get away with paying nothing to their creditors simply by making sure that any money they have is spent on goods. It would clearly be very frustrating to see a debtor owing you say £1,000, driving around in an expensive car, knowing full well that there is no practical step you can take to secure payment of the money due to you.
The Act has not yet come into force and the Executive has promised new procedures for enforcement, but meantime we would advise you to make sure that you pursue your debtors vigorously before it is too late.
Robin Millar, February 2000
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